To: Steve Fancy who wrote (3145 ) 3/22/2001 11:39:21 AM From: Gilbert Drapeau Respond to of 3891 Alcatel Awarded US$180 Million Contract For Mobile Expansion In China DALLAS, TEXAS--MARCH 22, 2001 - 11:32 EST Jiangsu Mobile Communication Co (JSMCC), a major mobile operator in China, has awarded Alcatel (Paris: CGEP.PA, NYSE: ALA) a US$180 million contract for a GSM network expansion project. The project is part of a long-term strategic partnership agreement signed today in Beijing. Under the agreement, Alcatel will provide JSMCC with its powerful Evolium solution, including base transceiver stations, base station controllers, mobile switching centers, operation & maintenance controllers-radio as well as a full range of professional services. Alcatel will also help JSMCC upgrade its network and ensure its transition to GPRS. Alcatel and JSMCC will also establish an overall strategic relationship for R & D, training and market development. This extension is the fifth project undertaken by JSMCC. Since 1994, when Alcatel installed Jiangsu Mobile's first GSM network, all expansion projects have been implemented by Alcatel's Chinese joint venture SBAMC (Shanghai Bell Alcatel Mobile Communications). "Providing quality of service has been the way to win customer loyalty," said Michel Rahier, president of Alcatel's mobile communication activities. "Through our seven years of cooperation, Alcatel has helped Jiangsu Mobile's network become one of the most reliable and powerful in China." "Quality of network as well as quality of service are essential to any operator," said He Ning, general manager of JSMCC. "Our long term relationship with Alcatel has helped build the mutual trust necessary to ensure continuous development. The number of mobile subscribers in Jiangsu has grown to 3.26 million from only 92.000 in 1994." "We are fully committed to helping Jiangsu Mobile achieve seamless migration to new generation networks in a cost-effective way," said Tarek Moustafa, president of SBAMC. In China, Alcatel has installed mobile networks in 15 provinces and autonomous regions including Jiangsu, Zhejiang, Shanghai, Jilin, Shanxi, Guizhou, Ningxia, Gansu, Chongqing, Liaoning, Xizang or Shaanxi. Alcatel installed China's first GPRS pilot network and WAP trial in December 1999. China's mobile users have increased from 43 million in 1999 to 85 million in 2000. This figure is expected to reach 130 million by the end of 2001. About Alcatel Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 130,000 employees and sales of EURO 31 billion in 2000, Alcatel operates in more than 130 countries. Alcatel has been present in China since 1983. Its investment in China has now brought forth 16 joint-venture companies and 6 wholly owned companies including five R & D centers, covering the full scope of telecommunications. It is also the supplier of all major telecom operators in China. For more information, please visit alcatel.com.cn . SBAMC, a joint venture between Alcatel and Shanghai Bell, focuses on the production and engineering services of complete GSM and DSC 1800 mobile networks in China. SBAMC is located in Shanghai's new area of Pudong and has branch offices in 11 provinces.